In the United Kingdom, housing is shaped by the demand and supply of the commodity (Connerly, 2014, Toussaint et al. 2014). As a rule, an increase in supply of a commodity results in a decrease in prices of that commodity. When supply of a commodity is limited, prices go down. In UK, the limited supply of houses means that the price of houses is high.
The UK suppliers immensely contribute to the housing industry. One of the advantages is that they provide a platform for the economy to be boosted. This is achieved through providing premises where entrepreneurs can invest, boosting the economy (Stone, 2014). Despite this, suppliers have some disadvantages to the housing industry. As a necessity, the demand of housing in UK is elastic. More supply means that the value of housing will significantly decrease. This has a negative impact on the raw materials required in the housing industry (Gallent, 2014, Gibb, 2014).
Suppliers in the housing industry in the United Kingdom have many advantages. One of these is the high demand of houses. With this demand, suppliers can manipulate the prices of houses (Simmons, 2014). The fact that alternative commodities to housing are unavailable means that the demand is not affected by substitutes. This has played into the advantage of suppliers.
The major disadvantage suppliers are facing is the high rate at which the real estate is developing (Poon, 2014). More people have seen the sense of building their houses, meaning the demand will be low in few years to come. With this, there will be a shift of power from suppliers to consumers.
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